LONDON: Nostra Terra, an international oil and gas company with assets in Texas, has signed a strategic partnership with a subsidiary of Cypress, a seismic data provider. The partnership will allow the two companies to use 3D seismic data to explore and develop new oil wells in a large area of East Texas, where they have already drilled two successful wells.
The partnership area covers 80,000 acres of land, more than 30 times the size of Nostra Terra’s Pine Mills oilfield. Nostra Terra will operate the new wells and have an 87.5% working interest, while Cypress will be carried in the initial three wells. The initial focus will be the sub-Clarksville horizon, which yielded over 130,000 barrels of oil from the two Fouke wells. However, the partnership will also target other productive horizons in the region.
The deal is expected to create significant value for both companies, as they leverage their expertise and technology to unlock the oil potential of East Texas.
Matt Lofgran, Nostra Terra’s Chief Executive Officer, said: “I’m very pleased to announce signing this agreement with our partners at Cypress. The success of the Fouke wells in our mature Pine Mills asset has been the focus of our technical efforts over the last several years. This work demonstrated that with the benefit of modern 3D seismic, the abundance of existing well information and very detailed geologic mapping work, prospects can be generated with the potential for Fouke-like results across an extensive area. Undrilled fault blocks, like Fouke, can now be identified, profitably developed and put into production in short time frames, given their locations in and around these mature assets. The area’s future potential may exceed its past performance based on the work done to date. This is an exciting time for the Company and I look forward to reporting on our results in subsequent periods.”